Eco. Env. & Cons. 26 (August Suppl. Issue) : 2020; pp. (S82-S85) Copyright@ EM International ISSN 0971–765X

The investigation of the prospect of using potential abandoned wells in South Sumatera

Eddy Ibrahim1, Maulana Yusup1 and R.R. Harminuke E.H.1

1Jurusan Teknik Pertambangan, Fakultas Teknik, Universitas Sriwijaya, Jl. Srijaya Negara Bukit Besar, , 30139,

(Received 10 December, 2019; accepted 1 March, 2020)

ABSTRACT This paper aims to examine the existence and current technical conditions of old wells in southern . Research conducted based on the analysis method of description of the data in the form of information on the distribution of old wells in general and other supporting data. The hypothesis developed in this paper that the future prospects of the use of old wells are closely related to infrastructure, regulation and socio- economic as well as the environment. The results of the study were obtained from 2,813 old wells in Province are found in five districts, namely , , , and . The highest order is Musi Banyuasin Regency with 108 wells, Ogan Ilir Regency with 6 wells, Muara Enim Regency with 7 wells, Musi Rawas Regency with 6 Wells and Banyuasin Regency with 4 wells. In general, the location of old wells in the five districts is very easy to reach because it is approximately 4 km to 7 km from the existing road. From the regulatory aspect, Musi Banyuasin district is more ready than the four other regencies because there are regional regulations that are derived from higher regulations and BUMD engaged in oil and gas (petroMuba). For the implications on the social and economic impact obtained that there is employment, increasing per capita income, preventing urbanization and developing human resources. From the environmental side, it is very necessary to have assistance and counseling in the management of old wells due to the lack of concern for the environment as evidenced by the non-standard in the management of liquid waste, air quality and B3 waste. Recommendations from the results of the study conclude that there needs to be firmness in the implementation of technical and environmental standards BPMIGAS Work Guideline No 023 / PTK / III / 2009 concerning Exploitation of Petroleum Mining in Old Wells.

Key words: Old wells, Potential, Prospects, Infrastructure, Regulation, Social economy, Environment

Introduction which is to reproduce old wells. Based on [2] Ministerial Regulation EnergY and The use of oil from year to year has increased, while Mineral Resources No.01. In 2008, the Old Well was there are only a few reserves. Indonesia’s oil pro- an oil well That was drilled before the year 1970 and duction in 2010 reached 344.5 million SBM with has been in production and is located in a field that proven reserves that could only provide oil for 11 is not cultivated in a work area bound by a contract years (Outlook Energy Indonesia, 2012). The limita- of cooperation and is no longer sought by the con- tion of its depleting reserves requires the Govern- tractor. Old wells that are still potential can be re- ment of Indonesia to make alternatives to meet the produced by the applicant through a series of national energy needs, especially in oil, one of stages. The Ministry of Energy and Mineral Re- IBRAHIM ET AL S83 sources obtained total data of the old wells in Indo- Results and Discussion nesia currently reaching 13,824 wells. Of the total old wells in Indonesia, 745 old wells are active and Distribution and Supporting Infrastructure 13,079 inactive old wells (Outlook Energy Indone- Old Well Location Distribution sia, 2012) from the available data it can be seen that utilization of old wells hasnot yet been carried out Based on SKK MIGAS data from the South Sumatra to the full. The total number of old wells in Indone- Regional Office, there are thousands of old wells in sia is spread across the southern Sumatra Province South Sumatra. But what is identified through the as many as 3,623 wells, northern Sumatra 2,392 coordinates of the location of old wells in this study, wells, central Sumatra 1,633 wells, East Kalimantan namely 138 old wells. The number of old wells is 3,143 wells, South Kalimantan 100 wells, Central scattered in several districts, where the district with Java-East Java-Madura 2,496 wells, Papua 208 wells the most old wells is Musi Banyuasin Regency. And and Seram 229 wells. South Sumatra Province has the smallest number is in Banyuasin Regency. The more old wells compared to other areas, which is following is a summary of data from old wells in 3,623 wells. This means that the South Sumatra southern Sumatra. Old wells were identified in five Province has a greater opportunity to develop and districts namely Banyuasin Regency 4 wells, Muara optimize the use of old wells in Indonesia to help Enim Regency 7 wells, Musi Regency Banyuasin increase national oil production (Outlook Energy 108 wells, Musi Rawas Regency 6 wells and Ogan Indonesia, 2012). Ilir Regency 6 wells (Figure 1). The coordinates of This paper aims to determine and recommend the location of the old well are plotted into the map the old wells that have potential prospects to be uti- and overlaid with several other map sections, such lized in Southern Sumatra. as regional maps, state road network maps and dis- trict road network maps. The area map is used as Methodology the basis for classification of well locations, so old wells are divided into districts, while road network Research Time and Location maps (state roads and district roads) function as supporting infrastructure for the development of The study was conducted at the beginning of Sep- old wells and also as access to reach well locations. tember 2017 until the end of November 2017 in the Exploration and Hydrology Laboratory room at the Supporting Infrastructure Development Old Well Mining Engineering Department, Unsri Faculty of Infrastructure supporting the development of old Engineering, Inderalaya. wells which one of them is the access roads to the Research Procedure location of wells. This road will be used to transport equipment for oil mining and other helping equip- The choice of location is based on the number of ment petroleum mining activities carried out in old wells Besides that, the distance between the location of traditionally. This research is a type of census re- the well and the buyer greatly influences the eco- search, which is a type of research that takes all lo- nomics of a well. The farther a well, the more expen- cations of wells as research subjects. What is meant sive transportation costs. The following will explain by the census is research that tries to explore how the infrastructure and accessibility of old wells from and why the phenomenon of old well mining occurs nearby roads in several locations. (Arikunto, 1996). The selection of the object of this study is based on the number of petroleum mining Location of Old Well Banyuasin Regency activities in old wells that are carried out tradition- The data of old wells identified in this study are 4 ally. Sources of data in this study using secondary wells, where the wells are in locations close to one sources. Secondary data is a source of data derived another. from identification using spatial data of the from the literature of books, the internet, related distance of the location of the old well to the nearest agencies in this case is a report from SKK MIGAS, road (district road which is ± 8.2 Km. this is quite the Ministry of Energy and Mineral Resources and close to the infrastructure as access road to the loca- RTRW of South Sumatra Province tion. Besides that the location of this well is near the S84 Eco. Env. & Cons. 26 (August Suppl. Issue) : 2020 boundary between the Banyuasin and Muara dis- tions are close to the border of Musi Banyuasin Re- tricts Enim, the closest distance from the Banyuasin gency. district road is 14 Km. Location of Old Well in Ogan Ilir Regency Location of Old Well of Muara Enim Regency The number of old wells in Ogan Ilir Regency is 9 One district that has many old wells is Muara Enim old wells. The location can be accessed easily from district. However, little can be identified in research. a national road, the distance is about 2km, and also Based on data, the number of old wells identified this location is close to the railroad tracks. This loca- was 7 wells. Administratively the location of the old tion is also not too far from the city of Palembang, well is within the area of Muara Enim Regency but only about 27 Km from the center of Palembang. in spatial distance, the location of the old well is Regulation of Old Well Development closer to the City of . The closest dis- tance to the location of the old well with the cause- Regulations regarding old wells are guided by the way is 4 Km, 5 KM and 19 KM from the crossing in following rules the City of Prabumulih. The location of these old • 1945 Contitutional article 33 paragraph 3 wells is quite promising in terms of accessibility in • UU no. 22 of 2001 the process of developing old wells. Only a few • PP No. 35 of 2004 hundred meters from the location of the well there • ESDM Regulation No. 1 of 2008 are district roads, and many access to small roads • BP Migas Work Procedure Number BP 023/ used by local residents, this is certainly very helpful PTK/III/2009 in the framework of developing old wells in this • Musi Banyuasin Regional Regulation no. 28 area. years 2007 Utilization of natural resources has actually been Location of Old Well in Musi Regency stated in the 1945 Constitution article 33 paragraph Banyuasin 3 which contains “The earth, water and natural re- Based on the data that was successfully identified in sources contained therein are controlled by the State this study, the number of old wells in Musi and used for the greatest prosperity of the people”. Banyuasin Regency counted to 108 wells or 78% of From the paragraph of the constitution it means that the total identified number. The location of old we can utilize various natural resources that exist in wells in Musi Banyuasin Regency is divided into5 our Indonesian motherland. One of these natural regional locations. The location in this area is exactly resources is oil and gas. The management of oil and close to the State road and district road, so it is very gas is then more specifically contained in Law No. easy to reach this location. 22In 2001, besides managing natural resources in The location of the old well is in the secondary Law No.222001 also contains the essence of regional forest area, the closest access from the residents’ autonomy which includes the authority in the man- road is 760 meters up to 1.8Km Right west of the agement of natural resource. previous location are 3 other old well locations. The BUMD, KUD were given the opportunity to do distance from the previous location is ± 16 km to the upstream and downstream business activities. Fur- west. Spatially this location is ± 3 km from the dis- thermore this essence is emphasized in article 34 PP trict road. If viewed spatially with a scale of up to 1: No. 35 of 2004 concerning activities upstream oil 750,000, several locations in Banyuasin Regency are and gas business that the contractor is obliged to seen piling up at a point, this indicates that the wells offer a 10% participating interest to the BUMD are close to each other. Accessibility to locations can when the first field development will be produced. be reached from the road of Musi Rawas Regency In addition, other BUMD management opportuni- with a distance of about 12 km. If viewed from the ties are realized in the ESDM Regulation No. 1. In previous location, separated as far as ± 23 km. 2008 concerning guidelines for petroleum mining in old wells which stated that the exploitation and pro- Location of the Old Well of Musi Rawas Regency duction of old well oil was carried out by KUD or There are 6 old wells in this district. Access to the BUMD based on an agreement with the contractor. old well can be traveled from the nearest district Furthermore, more specific regulations regarding road which is about 2.5 km and 4.2 km. both loca- old wells are contained in BP MIGAS Work Guide- IBRAHIM ET AL S85 lines Number 023 / PTK / III / 2009. The under- environmental standards will cause oil spills that standing of old wells according to ESDM Regula- have an impact on water environment pollution. tion No. 1 of 2008 is the Oil wells that were drilled Based on Government Regulation No18 of 1999 before 1970 and were produced and located in a juncto Government Regulation No. 85 of 1999 con- field that is not cultivated in a Work Area that is cerning Management of Hazardous and Toxic bound by a Cooperation Contract and no longer Waste (LB3), oil spills in the area of oil and gas ex- sought by the Contractor. For example, the classifi- ploration and production activities included in the cation of old wells for the Banyuasin region accord- B3 waste category. This is because the nature and ing to regulation no.28 of 2007 has a maximum concentration can endanger human health and the depth of 650 m. These old wells are generally no environment, while the characteristics that include longer producing, but their economics can be revis- B3 waste are explosive, flammable, reactive, toxic, ited at any time due to technology and inconsistent cause infections, are corrosive and are carcinogenic conditions. Old wells can return to production if To avoid oil spills and environmental pollution, managed by the BUMD or KUD as quoted from petroleum mining in old wells technically and envi- Ministerial Regulation ESDM no.1 of 2008 article 2. ronmentally must refer to BPMIGAS Work Guide- The definition of BUMD and KUD according to line No 023 / PTK / III / 2009 Concerning the Ex- ESDM Regulation no 1 of 2008 article 1 namely, ploitation of Petroleum Mining in Old Wells. BUMD is a provincial/municipal level enterprise established and all its shares are owned by the Pro- Conclusion vincial, Regency, and or City Regional Govern- ments and their business territories or the adminis- From the results of a review of existing data it can tration includes the location of the Old Well and be concluded that: KUD (Cooperative Unit Village) is a district-level • The number of old wells that have the potential Cooperative whose business area includes the loca- to be developed and utilized in South Sumatra tion of the Old Well. is quite large but which is clearly recorded with the highest number in Musi Banyuasin dis- Social and Economic Impacts on Old Well trict108 wells, Ogan Ilir Regency 6 wells, Muara Development Enim Regency has 7 wells, Musi Rawas Re- In the utilization and development of old wells, of gency 6 wells and Banyuasin Regency 4 wells course it cannot be separated from the social and • Supporting infrastructure to facilitate its utiliza- economic impacts on the community around the old tion in the five districts is relatively the same, wells area which are in their development and use. that is, it is quite close to district and state roads These impacts generally benefit the surrounding • Regulations for its use are adequate, especially community in terms of social and economic aspects, in the Musi Banyuasin regency where there is because they can exploit the potential residual con- already a regulations tained in the abandoned oil wells. • Social and economic impact is more dominant Here are some social and economic impacts and/ towards positive than negative or benefits: • From the environmental aspect the need for • Employment provider government decisiveness in implementing regu- • Increase revenue lations BPMIGAS Work Guideline No 023 / • Emphais on Poverty Rate PTK / III / 2009 • Prevention of Urbanitation • Lifestyle References • Human Resource Development Arikunto, S. 1996. Prosedur Penelitian.Jakarta: Rineka Cipta Pedoman Tata Kerja BP Migas Nomor 023/ Environment Impact on Old Well Development PTK/III/2009 In terms of the economy, petroleum mining in these Outlook Energy Indonesia, 2012 old wells is very helpful in improving the economy Ministerial Regulation Energi dan Sumber Daya Mineral and living standards of the local community. On the No.01 Tahun 2008 Peraturan Pemerintah No 18 Tahun 1999 juncto Peraturan other hand, oil mining in old wells which is done Pemerintah No 85 Tahun 1999 tentang Pengelolaan traditionally and has not followed technical and Limbah Bahaya Berbahaya dan Beracun (LB3)